Biden Stimulus & More Money Printing Cannot Fix The Economy

Biden Stimulus & More Money Printing Cannot Fix The Economy The US is about to experience one of the greatest inflationary periods in world history. Any credibility the Fed has left will be lost. Federal Reserve Notes soon won’t be worth a Continental. There are numerous signs that the economy has suffered fatal wounds. Permanent business closures are rising as the economic impacts of the pandemic-induced government shutdowns continue to ripple through the economy. And it’s not just the problems facing small businesses. I have already reported on the looming tidal wave of evictions, the increasing number of mortgage delinquencies, the rising number of over-leveraged zombie companies, and the tsunami of defaults and bankruptcies on the horizon. Given the deep wounds inflicted on the economy by the shutdowns, we should expect a quick bounceback even with a vaccine. As I have said over-and-over again, curing the pandemic won’t cure the economy. And then there is the dirty little secret Powell will never admit to. The Fed doesn’t have another rabbit to pull out of its hat. The cure that the Fed is offering up is actually killing the patient. Ultimately the Fed’s monetary policy is going to collapse the dollar. There were a number of inauspicious records set in 2020 and the impacts will continue to reverberate through the economy in the future. The Federal Reserve created money at a record rate. It also increased its balance sheet to record levels. And not to be outdone, the US government set a budget deficit record. These three records were actually linked. The money printing and expansion of the Fed balance sheet were necessary to monetize the massive federal debt. And there is no sign that anything will be different in 2021. The pandemic put Federal Reserve easy-money policy on hyperdrive. But make no mistake, the Fed was already forcing interest rates artificially lower and engaging in quantitative easing long before the pandemic arrived on American shores. In fact, there was no plausible exit strategy from this policy after the 2008 financial crisis and there is no exit for it today. It’s important to understand this isn’t just about rescuing the economy from a crisis. What was once considered extraordinary monetary policy is now the status quo and it’s necessary just to keep the economy chugging along. The government needs to lighten the burden that it places on the economy.It should be cutting spending. Instead, it’s doing the opposite and it’s adding an inflationary problem to the health problem, so we’re in much worse shape. Welcome back to the Nomad Economist, please like, share , and subscribe.Thank you. There seems to be a growing consensus in Washington that the only way to fix the worst economic downturn in more than 70 years is by giving out much more free money. Joe Biden wants more stimulus, Treasury Secretary Janet Yellen wants more stimulus, and most members of Congress from both parties want more stimulus.First of all, this is not going to stimulate the economy. This is going to sedate the economy. So, it’s not a stimulus. It is a sedative. Of course none of the previous stimulus packages that we spent trillions of dollars on fixed the economy, but they insist that this latest one will finally do the job. In addition to the 1.9 trillion dollar package that Biden has already proposed, Democrats in Congress are now pushing monthly direct payments to parents that have children under the age of 18. Needless to say, that proposal has overwhelming support among the American people, because direct socialist payments have become wildly popular since they were first introduced last year. But by borrowing and spending so much money, we are literally committing national suicide, but very few people are concerned about that at this point. Even though the previous round of stimulus payments is still being sent out, Biden and his minions can’t wait to start sending out another round. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more